O'Reilly Automotive Inc.'s (ORLY) second-quarter earnings rose
34% on record-high operating margin, as the auto-parts retailer
raised its outlook for earnings this year again.
The company predicted adjusted full-year earnings to $3.53 to
$3.63 a share, compared with April's boosted prediction for $3.49
to $3.59 a share.
In the latest period, operating margin rose to 15%, which Chief
Executive Greg Henslee said was a new high, from 13.1%. He
attributed the strong operating result to the company's "relentless
focus on expense control."
O'Reilly's sector was one of the fortunate corners of the
economy with relatively steady business during the recession, as
consumers preferred to keep their current cars working instead of
purchasing new ones. Its bottom line has continued to improve in
recent results.
Wednesday, O'Reilly posted a profit of $133.7 million, or 96
cents a share, from $99.6 million, or 71 cents a share, a year
earlier. The previous year's results included a 10 cent charge
related to the Department of Justice's investigation into CSK,
which O'Reilly acquired in 2008.
In April, the company predicted adjusted earnings of 92 cents to
96 cents a share.
Revenue increased 7.1% to $1.48 billion. Analysts surveyed by
Thomson Reuters anticipated $1.49 billion.
Same-store sales rose 4.4%, in line than O'Reilly's guidance for
3% to 5% growth.
The company forecast earnings of 98 cents to $1.02 a share in
the current quarter, bracketing the average analyst estimate of 94
cents a share.
Shares were recently up 0.8% at $61.95 after hours. The stock
hit its highest level ever at the start of the month and through
the close had fallen 7.6% from the high.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com